In present world there is an increase in demand for organic waste disposal to minimize pollution and maximize resource recovery. Several workers from various parts of the world have reported successful conversion of waste materials to useful compost. Lignocellulose comprises three different polymer types: lignin, hemicellulose and cellulose. Bioconversion of lignocellulosic material through microbial enzyme to produce fermentable sugars has been given serious consideration and continuous research and development activities has been carried out in laboratories around the world. This article highlights the significant research findings and reviews the state of the art in this very important area of biotechnology.